An economic treatment of pass through in indirect purchaser antitrust litigation

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The article, “An Economic Treatment of Pass Through in Indirect Purchaser Antitrust Litigation,” address updates regarding retail pass-through rates, the percentage of wholesale price changes that are reflected in the retail price. Most often, indirect purchaser antitrust litigations are brought as class actions. For these cases, it is necessary to prove that a price increase resulting from anticompetitive activity directly affected the direct purchasers, as well as to calculate the pass-through rate of these overcharges from direct purchases to indirect purchasers. In order to obtain class certification, experts must be able to establish that there was indeed pass-through of costs to all or virtually all class members.